There has been much speculation for some time about if and when an increase to the Bank of England base rate will occur.

For borrowers on a fixed rate, there will be no immediate change as the whole concept of a fixed rate, is that is ‘fixes’ the repayment for a set period of time. Those on variable rate however, will see the impact of any increases when they happen. This means that your mortgage repayment will increase, and dependent on the rate you are currently paying, the size of your mortgage may or may not have a noticeable impact on your disposable income.

For those already challenged with maintaining the finances involved in maintaining their home, it could have quite a big impact. Gillian Guy from Citizens Advice has stated on the issue:

“Historically low interest rates over the past six years have made it easier for people to manage their finances. A rise in rates will make things harder for those already struggling, and push those who are just about managing over the edge.”

She went on to say that evidence indicated that around a fifth of those holding a mortgage would fall into arrears with a rate increase, so it needed to be a slow and steady increase.

You will be qualified to undertake a full affordability assessment with your customers when you have passed your CeMAP training, to ensure that all approved borrowing can afford to be repaid both now and if there were to be a future rate increase.

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